Colombo bourse recovers from 4-day slump as traders wait and watch

    Colombo equities recovered on Thursday after a 2-day holiday following the sharp sell-off during the past few trading days, owing to the proposed ‘super gain tax’ which ripped through the market.   Analysts said the long term impact of this tax has now settled in the minds of traders and the fall which was seen on Monday, spilling over from the previous week was due to the panic selling.   The super gain tax is the largest one-time revenue raising measure perhaps in the history of national budget with a staggering Rs. 50 billion estimated from this proposal alone.   According to some analysts, most investors are likely to resort to a wait and see approach tomorrow. They also expect more local participation in the coming week while foreign participation is likely to be moderated.   Budgetary measures impacting the equity market are likely to be a temporary setback and would provide a good opportunity for the bargain hunters to collect fundamentally strong counters trading at cheaper prices, analysts added.   The All Share Index ended at 7,047.31, gaining 0.67 per cent with S&P gaining 1.68 per cent to end at 3,865.59 on a Rs. 2.3 billion turnover.